MPG acquires retail-converted-office

The Townsville property (outlined) sold for $26m.

MPG Funds Management is paying $26 million for a modern, central Townsville office.

City Point, at 101-119 Sturt Street, on the south west corner of Stokes, replaced a Woolworths-backed shopping centre of the same name, in 2018.

Commonwealth Bank is one of the retail occupiers.

The redevelopment still contains ground level retail, including a space occupied by the Commonwealth Bank of Australia.

Based on the asset’s fully leased annual rental return, the sale price reflects a 6.39 per cent market yield.

Lancini Group, the vendor, was represented by JLL’s Jacob Swan and Elliott O’Shea.

City Point

City Point covers a 4066 square metre site opposite Perfume Garden Park and diagonally adjacent to Townsville District Court.

There is 5047 sqm of lettable area; the offices are rated A-grade.

Three of the new retail spaces are sub-100sqm while six are greater than 330sqm.

A basement contains 112 car parks.

The Department of Emergency Services, Department of Housing & Public Works and Queensland Police are its biggest occupiers.

The Weighted Average Lease Expiry, by income, is just over five years (story continues below).

MPG builds Queensland portfolio

Melbourne based MPG was established 29 years ago by late Spotless founder Ian McMullin as McMullin Group.

It now controls a portfolio worth $750m across six states. About 200 tenants occupy its property’s c250,00 sqm of lettable area.

Last June the group paid $40.98m for five government backed office investments to populate its Regional Cities Property Trust – which will also hold City Point.

Six months ago, it spent $6m on a Nambour retail investment – on a 2543 sqm central town block.

Not long after, it acquired a renovated Beenleigh commercial property rented to the Department of Corrective Services – for $6.95m.

Rasmussen servo collects $5.57m

Meanwhile in Rasmussen, about 15 kilometres south west of Townsville, a service station has sold to a Gold Coast investor.

The $5.57 million price for 2-4 Santal Drive, on the north west corner of Riverway, reflects a 6.41 per cent net passing yield. It is fully leased to Fresh Trading Co for 15 years; the bowsers are Mobil branded.

CBRE’s Sebastian Fahey and Darren Collins were the agents.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of